According to the firm's 10-K filing dated March 29, 2000, in July 1999, the plaintiff voluntarily dismissed the federal case.

The original complaint charges Lumisys and certain of its officers, directors, controlling shareholders and its securities underwriters with violations of the federal securities laws. The complaint alleges that Lumisys, its controlling shareholders, insiders and investment bankers participated in a fraudulent scheme by misrepresenting the state of Lumisys' business and its future prospects.